Asked by Caitlyn Christy on Apr 28, 2024
Verified
The business entity assumption means that
A) the owner is part of the business entity
B) an entity is organized according to state or federal statutes
C) an entity is organized according to the rules set by the FASB
D) the entity is an individual economic unit for which data are recorded, analyzed, and reported
Business Entity Assumption
An accounting principle that treats a business as an entity separate from its owners, meaning its financial transactions are recorded distinctly from those of its owners or other businesses.
Economic Unit
An entity, such as an individual, household, or organization, considered in economic analysis and decision-making.
FASB
Financial Accounting Standards Board, an organization responsible for establishing accounting and financial reporting standards in the U.S.
- Understand the concept of business entity assumption and its significance in the field of accounting.
Verified Answer
Learning Objectives
- Understand the concept of business entity assumption and its significance in the field of accounting.
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